CERT-In Warns Banks and Financial Institutions of Rising AI-Powered Cyberattacks and Fraudulent Transactions

India's cybersecurity agencies have issued an urgent warning to banks, non-banking financial companies (NBFCs) and fintech organisations following a rise in sophisticated cyberattacks involving artificial intelligence (AI). The attacks have reportedly resulted in unauthorised financial transfers worth several crores of rupees.

The Indian Computer Emergency Response Team (CERT-In) and the Indian Cyber Crime Coordination Centre (I4C) issued advisories on 3 and 4 November 2026, highlighting serious vulnerabilities in digital payment infrastructure.

According to the advisories, cybercriminals are exploiting outdated software, improperly configured servers and weaknesses in payment-processing systems. Once access is gained, attackers manipulate automated fund-disbursement platforms and application programming interfaces (APIs) to transfer money into fraudulent accounts.

CERT-In has identified an AI-assisted cyber threat actor named CRAFTY FALCON, which uses publicly available artificial intelligence tools to automate attacks. These technologies enable hackers to identify security weaknesses, generate customised attack scripts and execute multiple attack stages with limited human intervention.

Investigators have also observed that stolen funds are rapidly transferred through banking channels, including IMPS and NEFT, making recovery difficult. Some attacks have reportedly occurred during weekends and holidays when security monitoring may be reduced.

In response, authorities have directed financial institutions to strengthen cybersecurity controls, regularly update software, monitor suspicious transactions and restrict unauthorised access to payment systems.

Institutions have also been instructed to report cybersecurity incidents to CERT-In within six hours of detection. Banks and NBFCs must additionally notify the Reserve Bank of India through its DAKSH reporting platform.

The warnings highlight the growing sophistication of AI-assisted financial cybercrime and the need for stronger security safeguards across India's digital financial ecosystem.

05-11-2026